For all businesses that have somewhat of a prototype in the market, it is important to know and develop your competitive advantage i.e a condition or circumstance that puts your company in a favorable or superior business position. So building your competitive market advantage means to discover what it is that you do better than
For all businesses that have somewhat of a prototype in the market, it is important to know and develop your competitive advantage i.e a condition or circumstance that puts your company in a favorable or superior business position. So building your competitive market advantage means to discover what it is that you do better than your competitors and concentrate your resources on making it the best customers will find around.
It is important to note that in developing a winning market strategy, entrepreneurs or business men and women have to understand that the basics are in place. You cannot build on having a better customer service than your competitor if you cannot do things as simple as producing quality products. Your improved customer service delivery will only go to waste as customers will most likely prefer to get quality product with an average customer service experience than a below par product. So, building a competitive advantage only makes better sense when it is done on an already existing strong and quality business ethics.
So, while creating a sustainable competitive advantage is not easy, the following steps will help ensure you get and remain ahead in your field by providing you with a solid competitive advantage
Customer Service Delivery
All things being equal i.e quality product in place etc, knowledge of customers and exceptional service delivery are the only sustainable form of competitive advantage, according to Forrester Research. This research underlines the importance of excellent customer service delivery as a very key way of gaining competitive advantage over your competitors.
This means that businesses have to invest in customer research, quality of customer experience and customer service, sales channels that provide high levels of customer information and marketing material that uses customer information to create high levels of personalisation.
It is a known fact that a cheaper product which is equally top quality and can serve its expected purpose will attract more customers than a more expensive one. So if you as a low-cost producer can offer customers prices that your competitors may not be able to match, then you will get more customers to your side.
This doesn’t mean you should reduce cost and not be able to recoup your production cost or make profit, but you can make a number of strategic moves to reduce costs like investing in efficient production equipment, outsourcing manufacturing to a low-cost producer, or collaborating with suppliers to improve supply-chain efficiency etc.
Customers love variety and upgrades, so companies need to concentrate more on developing innovative solutions with exceptional value and unique benefits for customers. A culture of innovation in which you develop products that differentiate your company and meet customer needs more effectively than your competitors give you an edge and those innovations will provide a strong advantage because competitors will find it difficult to imitate them or provide substitutes that offer similar quality and value.
A partnership strategy with a strong multi-national or organization can improve many aspects of competitive advantage. Working with partners gives access to important qualities your business might be lacking such as skills, components or other resources that will enable you to build a stronger brand, business and market advantage.
An important aspect of this entire process of building a strong and sustainable competitive advantage lies in having a very knowledgeable and informed team. Relevant knowledge and information can help you reduce costs or improve performance and efficiency in areas that provide competitive advantage like product development, engineering, manufacturing and customer service.